The Indian stock market faces a delicate balance on December 10, 2024, with the Nifty 50 showing cautious consolidation and stock picks suggesting optimism. Here’s the trade setup for today, covering key levels to watch, the outlook for major indices, and stock recommendations.
Nifty 50 Faces Resistance Amid Consolidation
As the Nifty 50 index continues its consolidating pattern near the 24,600-24,700 range, experts are maintaining a cautiously positive outlook. After closing 0.24% lower at 24,619 points on December 9, the market is still trying to find direction. Analysts are hopeful, though, that the index might soon break through the 24,750 level, which could lead to an upward move toward the 25,200 and 25,800 targets.
Support and Resistance Levels to Watch
Vaishali Parekh, VP of Technical Research at Prabhudas Lilladher, explains that the immediate support for the Nifty 50 is found at the 50-day exponential moving average (EMA) level of 24,400. A sustained move above 24,750 could trigger further gains, while a dip below 24,400 might dampen the market’s momentum.
For today, Parekh also highlights that the Nifty 50 has support at 24,500 points and resistance at 24,800 points. These levels will be crucial for traders looking for potential breakout or breakdown points.
Bank Nifty Outlook: Rangebound with Key Support Levels
On the Bank Nifty index, experts observe that the 53,800 zone has become a significant resistance point. Despite several attempts to break higher, the index has been stuck in a range between 53,300 and 53,500. Parekh suggests that the Bank Nifty needs to maintain support at the 52,600 level to avoid any bearish signals and retain the upward bias.
Bank Nifty Range and Resistance Points
For Tuesday, the range for Bank Nifty is expected to be between 53,000 and 54,000 points. This rangebound movement has left traders cautious, but a break above the 53,800 level could reignite bullish sentiment.
US Dollar: A Flat Day Amid Global Movements
The US Dollar Index remained flat at 105.95, but notable movements were observed against other currencies. The Euro strengthened against the dollar, climbing to $1.0576 after a brief dip. The Japanese Yen, however, saw a drop, with the US Dollar rising to 151.2 yen.
In addition, both the Australian and New Zealand Dollars saw gains against the US Dollar. The Australian Dollar rose by 1.15%, while the New Zealand Dollar gained 0.79%, partly fueled by China’s shift in monetary policy to spur growth.
Stocks to Buy Today: Top Picks for Tuesday, December 10
As for stock picks, analysts have suggested several high-potential stocks for short-term trades. Sumeet Bagadia, Executive Director at Choice Broking, has recommended two stocks, while Ganesh Dongre from Anand Rathi has picked three for Tuesday. Let’s take a look at the suggestions:
1. City Union Bank Ltd. (CUB)
- Buy at: ₹186.27
- Target Price: ₹195
- Stop Loss: ₹180
CUB is showing strong bullish momentum and is currently trading near its 52-week high. The stock is supported by robust volumes and positive technical indicators, including the Relative Strength Index (RSI) at 71.15, signaling continued upward potential. Traders should watch the key support at ₹180 as a break below this could signal a shift in market sentiment.
2. Lloyds Metals and Energy Ltd. (LLOYDSME)
- Buy at: ₹1,098
- Target Price: ₹1,180
- Stop Loss: ₹1,060
Lloyds Metals has been experiencing strong buying interest, with a significant upward movement. The stock is trading above its key moving averages, indicating sustained positive momentum. The RSI is also showing bullish signals, making this stock a solid pick for traders seeking short-term gains.
3. Indian Railway Finance Corporation (IRFC)
IRFC has been a consistent performer, with analysts predicting continued positive movement. The stock offers a good entry point for long-term investors, especially considering the growth in India’s railway sector.
4. Hindustan Aeronautics Ltd. (HAL)
HAL has shown strength, backed by favorable market conditions for defense stocks. With growing demand for defense equipment, this stock is poised to benefit from government spending in the sector.
5. Axis Bank Ltd.
Axis Bank continues to be a solid bet, with strong fundamentals and a stable growth trajectory. Analysts expect further upside as the banking sector recovers and the economy improves.
Key Takeaways for Today’s Market
While the Nifty 50 and Bank Nifty have been consolidating, the technical outlook suggests potential for further movement, depending on how key support and resistance levels hold up. The US Dollar’s strength against the yen and its relative stability against other major currencies adds another layer of complexity for traders.
As we move forward, the stock picks for today—CUB, Lloyds Metals, IRFC, HAL, and Axis Bank—offer traders a mix of solid opportunities across various sectors. Watch for the key levels mentioned above, as a breakout or breakdown from these levels could dictate the direction of the market.
